What’s Next for NAFTA?

May 15th, 2017

In place for 23 years now, the North American Free Trade Agreement (NAFTA) is widely considered to be the most significant trade pact ever entered into by the United States. A source of both derision and applause, the agreement’s positive impacts have been felt unevenly depending on the region of the country or sector of the economy.

The 2016 presidential campaign saw some of the strongest rhetoric to date over the United States’ posture towards NAFTA, with some of the sharpest criticism coming from then-candidate Donald Trump. Since his election, the president and his administration have taken a less protectionist posture than many feared. However, in late April that changed, when Trump lashed out again against the agreement, indicating he was going to begin proceedings to withdrawal from the pact via executive order (the U.S. must provide both Canada and Mexico with six months’ notice prior to exiting the agreement). However, following calls with the leaders of Mexico and Canada on the same day as his withdrawal statement, he quickly reversed his position and said he work to renegotiate the agreement instead of terminating it, still leaving withdrawal as an option should renegotiations fail. As of the date of printing of this piece, that continues to be the position being pursued by the administration.

 

The Impacts of NAFTA

What impact has NAFTA had on the North American fresh produce industry? Since entering into force on January 1, 1994, the trade in fruits, vegetables and tree nuts between the U.S., Mexico and Canada has expanded significantly, although the benefits have not always been uniformly distributed.

In 1993, the year prior to NAFTA, U.S. growers had a $1 billion balance of trade deficit with Mexico. Since then, U.S. fresh produce exports to Mexico have increased by more than 400 percent, and imports from Mexico have risen by more than 800 percent, pushing the trade deficit to nearly $10.5 billion in 2016. The growth in exports to Mexico has been led by apples, stone fruit and tree nuts, while the import growth has been driven by tomatoes, avocados, berries and grapes.

With Canada, exports have increased $2.4 billion since the establishment of NAFTA, growing from $1.4 billion in 1993 to nearly $3.8 billion in 2016. Similarly, imports from Canada have increased by $1.4 billion during the same span. Leading export commodities to Canada include table grapes, citrus, berries, leafy greens, apples and tree nuts. Meanwhile, the U.S. has seen an increased level of tomato, potato and pepper imports from Canada.

While the produce sector has seen a considerable increase in imports as a result of NAFTA—indeed, Mexico and Canada combine to represent nearly 60 percent of fruit and vegetable imports into the United States—the U.S. has also seen significant growth in both acreage and value of overall produce production since 1993. Since the implementation of NAFTA, the total value of the U.S. fresh produce industry has nearly doubled, growing from $24 billion in 1993 to just shy of $47 billion in 2015, the last year for which finalized data is available. Likewise, the total number of U.S. acres dedicated to fresh produce has increased by 13 percent over the same period of time.

It is undeniable that NAFTA’s removal of tariffs between Canada, Mexico, and the United States has had an impact on trade dynamics for the North American produce sector. But there are also a number of other factors that have led to an evolving import and export relationship between these three countries, including labor availability, land and resource availability, consumer demand, seasonality and domestic laws.

As policy makers in Washington take a fresh look at NAFTA, Western Growers is working to identify the effects various components of our trade arrangements with Mexico and Canada have had on U.S. growers, and whether any changes could be made to make our members more competitive. As supporters of free markets, we understand free trade leads countries to grow and manufacture the commodities and products for which they have a competitive advantage. However, if our trading partners are manipulating the system, encouraging unfair practices or applying rules in non-scientific ways, these problems should be addressed.

The president has wide-ranging authority when it comes to trade policy. His administration has the authority to completely withdraw from any trade agreement without the need for congressional approval, such as it recently did with the Trans Pacific Partnership (TPP) and has he threatened to do with NAFTA via executive order. If renegotiations fail to produce an updated NAFTA and we withdraw from the agreement, Trump’s team could attempt to negotiate new agreements directly with Mexico and/or Canada, though this would be at least as difficult a task. There is also the possibility that the countries could enter into a broader TPP-type pact with multiple other countries that includes changes to the NAFTA relationship.

Any changes to the NAFTA arrangement will be potentially disruptive to the current state of trade among the three countries. Yet to be seen, and the primary question with which Western Growers is concerned, is whether changes to NAFTA will improve the relationship and business opportunities for our members.

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The Cold Partisan Reality of the California Gas Tax Legislation

May 15th, 2017

We take a break from our regularly scheduled program, “California Needs More Moderate Democrats in Sacramento,” to bring you this news flash:  California—and especially its private sector economy—needs more Republicans in Sacramento.

As everyone now knows, the Democrats won two-thirds supermajorities in both houses of the Legislature last November. They briefly held a slim supermajority in 2013, but for various reasons they didn’t flex those muscles and soon fell back below two-thirds. This time, however, looks to be different.

Just as most of us were getting ready to file our tax returns, Governor Jerry Brown and the Democratic leaders of the Legislature strolled out to the east steps of the state Capitol and announced that they had reached agreement on legislation imposing a huge $52 billion tax increase over the next decade. This is needed, we are told, to fix California’s crummy roads, highways and bridges. The photogenic backdrop for the announcement was a gaggle of union members and local government officials, all hungry for this promised infusion of money. Hard to blame them.

There is some irony here, of course. The private sector union members standing behind the Governor and the beaming legislators are among the Californians who will be hit hardest by the regressive increases in gasoline and diesel taxes at the heart of this plan, known as SB 1.

In the days that followed the celebratory announcement, the legislation was revealed to the public and rushed through committees and onto the floor of each house. It was a box-checking exercise, not meant to elicit constructive testimony that can educate legislators and improve their ultimate work product. The goal was to get the bill to the floor of each house and get the vote done fast, because with every hour that passed, more Californians heard news about the huge tax hikes aimed at them (12 cents per gallon more for the excise tax on gasoline, 20 cents per gallon more for the excise tax on diesel, plus an additional 4 percent hike on the diesel sales tax). Angry calls and emails to legislators began to pour into the Capitol.

And therein lies opportunity, perhaps, in the next election.

This was a party-line vote. Only one Republican in the Legislature voted for SB 1 (Sen. Anthony Cannella of Ceres), while two Democrats voted against the tax measure (Sen. Steve Glazer of Walnut Creek and Assembly member Rudy Salas of Bakersfield).

Republicans now have an opportunity to challenge Democrats on an issue that is highly unpopular, according to surveys. Governor Brown surely knows this, given his previous insistence—back when he still had to face the voters—that voters should pass judgment on a major tax increase, which led to the 2012 ballot measure increasing income taxes on wealthy taxpayers (Prop. 30). Brown has said that the voters approved it because it raised taxes on someone else.

Not the case this time. A 43 percent increase in gasoline taxes hits almost every Californian, and hits those in lower income brackets hardest. The voters weren’t consulted, they were ignored.

Republicans can build a campaign theme around the legitimate worry voters will feel, knowing that if the Democratic supermajority in Sacramento can muscle through a $52 billion tax increase that hits nearly every Californian every time they gas up, they might not stop there.

For interests representing businesses, a window of opportunity like this cannot be lost. The many trade associations and groups representing business interests must band together and provide the political backing needed to help Republicans take seats wherever possible, to not only reduce the Democratic majority below two-thirds but to also build a cushion—and keep building.

Much has been written and said about the decline of the Republican Party in California, and much of it is accurate. But continued decline is not written in stone. Republicans can restore their relevance by focusing on economic issues in working-class neighborhoods. At the same time, Republicans must adapt to the social-political complexities unique to California. The state is really a collection of several states; a Republican elected in Kern County and a Republican who can be elected in places like the East Bay Area or the Inland Empire, may have profound differences on many social issues and even on matters that affect the economy, like environmental regulation. But neither of them will be able to accomplish anything for their constituents if they can’t find a way to unite around economic issues, tolerate the differences that reflect the different “states” they represent within California, and rebuild their ranks in the Legislature.

In March, during the Western Growers Board of Directors meetings in Sacramento, our volunteer leaders took a few hours during one evening to participate in a political fundraiser for the Republicans in the Legislature. Some smart political operatives in Sacramento might scoff at that, calling it a waste of time. We can’t predict whether Republicans can regain their relevance in Sacramento anytime soon, but we know how this story ends if California’s business community gives up.

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Is Your Beneficiary Properly Designated?

May 15th, 2017

In my experience as a financial professional, one seemingly simple task often creates significant unintended consequences for individuals with retirement and other investment accounts: the proper designation of beneficiaries.

First, a bit of terminology. In a qualified account, such as a 401(k) or traditional IRA, the contributions are pre-tax and grow tax-deferred until withdrawal. Non-qualified accounts include investments that are made after-tax, and include personal assets of real estate, life and annuity insurance policies, in addition to stocks, bonds and other traditional investments not bought under qualified plans.

Why is this investment lesson so important? Because the type of account you have—qualified vs. non-qualified—will generally determine who you should designate as your beneficiaries.

Let me illustrate this with an example. Recently, one of my clients was the administrator for his deceased brother’s estate. The deceased brother in this story, who was divorced with three adult children, made his trust, not his three adult children, the beneficiary of his traditional IRA (if we recall from our earlier brief lesson, a qualified account).

Naming his trust as the beneficiary of his qualified retirement account may have seemed like a logical designation, especially since his trust documentation clearly left the beneficiaries of his estate to his children. However, by choosing to designate the trust as the beneficiary of his traditional IRA, the brother created a taxable event that could not be rectified and resulted in the payment of tens of thousands of dollars in taxes up front prior to equally distributing the remaining amount.

As this case demonstrates, when a single, unmarried person has qualified assets that are tax-deferred, an individual should (more often than not) be designated as the beneficiary. Had the deceased brother listed his three adult children as the beneficiaries, they would have been able to transfer the inherited money into an “inherited” IRA, which would have allowed them to only take smaller required minimum distributions, lessening the taxation burden and stretching it out over the course of several years.

To be sure, there are some exceptions, such as when children are of minor age or have special needs, where a trust can be helpful solution for qualified retirement accounts.

For non-qualified personal assets such as real estate, life and annuity insurance policies and other tangible personal property, these investments should be clearly defined in a trust or in a will that specifies who will be the beneficiaries of such assets. Under the current estate tax exemption for 2017, the IRS allows for $5.49 million dollars of personal property to pass tax-free, regardless of who inherits the assets. This amount is indexed for inflation in future years so it is expected to go up over time.

In light of this example, it may make some sense to look at your current qualified investment accounts, such as your 401(k) and/or traditional IRA, to determine if you have the proper primary and contingent beneficiaries listed on your paperwork. It is especially important to revisit your designated beneficiaries if you have had any recent life changes, such as a divorce or loss of a loved one.

Western Growers Financial Services (WGFS) is a full-service investment brokerage company that specializes in individual and company retirement accounts, as well as wealth management strategies. We are available to provide our members guidance on proper beneficiary designations, and can also recommend reputable outside experts to assist you in your taxation and estate planning. For additional information or consultation, contact WGFS President Matt Lewis (949.885.2379 or [email protected]).

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Shielding Your Business from Recall Exposure

May 15th, 2017

Costs from a product recall or contamination can easily cripple even the most conscientious organizations. Western Growers Insurance Services is working hard to reduce the exposure of your brand and balance sheet to losses due to a contamination event.

With the significant increase in product recalls (especially in the food industry) in the past few years, the need for recall and contamination coverage has never been greater—and we understand that. We recently rolled out the Western Growers Contaminated Product Program (WGCPP) to help agribusiness and food clients mitigate the detrimental effects of a recall.

We’ve designed the program to make it a fully customizable, three-stage approach to managing all risk related to a recall. Our WGIS experts will guide you in:

1.  Understanding the true cost of a recall. The program helps you recognize which costs are associated with a recall and how to quantify exposures.

2.  Managing economic risk. WGIS helps you prepare, respond and recover, and protects from financial losses.

3.  Planning for financial recovery. We are committed to assisting you in identifying specific opportunities to recover expenses related to a recall.

Backed by WGIS’ access to global markets, WGCPP leverages a proprietary approach unique to agriculture. Clients will receive comprehensive consultation to assist in the prevention of recalls, mitigate exposure and expertly navigate through any recall-related event.

Since we focus exclusively on food and ag companies, we understand the importance of developing a solution that fits the individual needs of each and every company. The risks are individually underwritten, and pricing is different for each commodity. One of the reasons we were successful in building this was the broad base of agricultural commodities we represent.

Our new program is the third part of our recently implemented WESTERN GROWERS SHIELD™, an ag-industry specific insurance solution that protects members from cargo, contamination, recall and non-physical damage loss of income. We now offer ag-exclusive insurance options from multiple carriers across the global market and give you the opportunity to tap into international offices and subject matter experts.

WGCPP is our latest product evolution, bringing together the whole of our experience and connections with industry partners around the world to deliver a comprehensive product recall management solution—designed specifically for you! To take the next step in shielding your business from the vulnerabilities inherent in product recalls, feel free to reach out to me or one of our WGIS associates at 800.3334WGA or www.wgis.com.

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LEGISLATOR PROFILE: Arizona Senate Majority Leader Kimberly Yee Representing Arizona’s 20th Legislative District

May 15th, 2017

You were born and raised in Arizona. Tell us a little bit about how you got to be where you are now.

I was born and raised in Phoenix, the same legislative district I now represent, which is northwest Phoenix and parts of Glendale. I guess you can say I am “homegrown.” I am the one of three daughters born to a mom who was an Arizona public elementary school teacher and a dad who is former U.S. Army and a small businessman. I attended public schools in the Northwest Valley and went to Pepperdine University for undergrad and ASU for my Master’s in Public Administration.

I didn’t think I would stay in California beyond the four years I was there for college, but a fellowship opportunity in Governor Pete Wilson’s second term took me to Sacramento and I ended up staying much longer. As a fellow, I worked on childhood development issues at the Department of Education and a year later became an appointee of the Wilson administration working on other education-related issues in the K-12 system. I enjoyed my time there, but it was important that I come back home. So I came back to Arizona and worked in the Senate as a bi-partisan research analyst for the Senate Education Committee.

In that position, I analyzed all of the bills that came to the committee, wrote fact sheets in layman’s language and presented them on a weekly basis to the voting members of the Senate. It was a wonderful experience to see the legislative process in action and was a fantastic training ground for what I would do later in life. It was a great experience because I really got to know the process first hand.

Following that job, I actually got a call to go back to California to work for Governor Arnold Schwarzenegger during in his first term. It was a great opportunity so I took it. I served as deputy cabinet secretary and managed a portfolio that consisted of issues including education, state consumer services, labor and workforce development and the lottery. California was in a budget bind at that time and was coming out of some really tough times, so I was also helping the team to rebuild the state’s budget. It was a great experience to reunite with those people who I worked with in the Wilson Administration.

Around 2005, I came back home to Arizona and started working for the state treasurer as his communications director and legislative liaison. I did that for four years. Senator Linda Gray was my state senator then and one day she asked me to lunch. During lunch, she said she was contemplating retirement at some point and I should really think about running for the legislature one day. She said I could hit the ground running since I knew the ins-and-outs of policymaking and worked extensively with elected officials. I thought and prayed about it and 5 years later, in 2010, I filed my paperwork to run for a House seat. After I filed my paperwork, a House member resigned which created a vacancy and I was selected to fill the remainder of his term. It was only for a short period, but it was clear to me that the door was open. That fall, as a candidate, I was elected as the first Asian American female legislator to serve in the state legislature in Arizona. It is really an honor and a special blessing since I am representing my home district where I was raised. My husband and I own a small dental practice in the West Valley. To be a small business owner while raising a family here really puts everything into perspective when we come down here and make laws.

 

Did you have any experience with agriculture growing up?

Yes, I did. My family did a lot of field trips to educate us about where we were growing up. On occasion, we would go out to the West Valley to visit farmlands. As a Girl Scout, we also did a lot of field trips to local farms and met farmers and learned how food got from the farm to the stores. It was always very interesting and there were always so many different commodities. We had a small farm in our area that grew pumpkins and vegetables and they had a small farmers market. We would walk through the fields first then get our groceries at the market after. It really made eating that food so much more enjoyable since we knew where it came from and were able to buy it directly from the producer.

Early in my career, while working in California, I also had eye-opening and educational experiences. Getting to know A.G. Kawamura when he was Secretary of the California Department of Food and Agriculture opened my eyes and made me appreciate what the ag community does. A.G. would often talk to us about his experience us as a farmer and educate us ‘policy people’ about making laws and what works best for the industry.

 

What was it that you saw, witnessed or experienced growing up that influenced your decision to serve in elected office?

I had so many different experiences growing up that influenced me because the area I grew up in—the area I now represent—has wide ranging demographics. The northern part of the district is generally affluent, while many constituents in southern parts and areas further west rely on state subsidized care or programs.

My mother taught for 38 years in one of the poorest school districts in the state. At the dinner table, she would tell us about how children less fortunate would come to school not properly clothed. As such, I always think about the low-poverty schools and how our existing or proposed laws affect them, whether they are in my district or not. When considering legislation, I have to think about issues that affect families in all parts of the state, not just my district. That has affected, and will always affect, my decision-making here at the Capitol.

 

You are the first Asian American female to ever be elected to the Arizona Legislature and the second ever female senate majority leader in Arizona legislature history. Tell us a little bit about who inspired you.

As I mentioned before, Sen. Linda Gray was my state senator and first inspired me to run. I got chills after she asked me to consider running for office because it was one woman asking another woman to serve in a leadership position. After much thought and prayer, five years in fact, I think I made the right decision.

 

You were an honored speaker on the first day of the Republican Convention in Cleveland last July. What was that experience like and how has it shaped your outlook on government and politics?

It was a real honor to be asked to speak. It was a wonderful and memorable experience to be a speaker. I was a delegate to the Republican National Convention in 2008, so I had the experience of sitting on the convention floor in the past, but I never thought I would be on the stage addressing the delegates from a podium. It was an honor of a lifetime. As I said in my speech, we are in a new, exciting day and I think we really have a great future in front of us.

 

Arizona has an agriculture industry that produces more than $17 billion for the state. What can the Arizona Legislature and the government do to continue to promote Arizona agriculture both within the borders and outside of them?

This is a great question. I have promoted a pro-business agenda as an elected official, not only because my husband and I are small business owners and because I come from a family of small business owners, but because it’s important to help those who create jobs in our state. And the best way to help is by getting out of the way. Getting out of the way means we need to reduce unnecessary regulatory burdens that hinder businesses from growing and thriving. We must strive to instill a free enterprise spirit.

I try to educate myself when we are not in session by talking with business owners so I can understand their problems. If that conversation doesn’t occur, I won’t know how to help fix their day-to-day problems. So I will continue to promote economic growth, business development and job creation while I am here in the legislature.

It’s also very important that the agriculture community share their stories about their issues. They work the farm day-to-day, year-to-year and they know what needs to be done to get the product to the shelf. Sharing that experience with us is so important since many of us have not worked in that profession and don’t represent ag areas. We need to hear these stories in order for us to be the best advocates in the legislature for the industry.

 

You have a strong background in education and come from a state where agriculture is a major industry. How important is it to teach our children how to eat healthy and to have them understand where their food comes from?  Is there anything else we can do to get out children more involved in agriculture?

This is so important. We should always do more to ensure that students understand how important agriculture is to our state. Personally, I love giving tours to school children. The tour ends at my senate desk where there is a state seal on the floor. We discuss each symbol on the seal and go through the 5 ”C”s (Copper, Cattle, Cotton, Citrus and Climate) with them. Beyond that, the state will have a good opportunity over the next couple of years to promote agriculture’s importance because the state board of education is going to be adopting revised academic standards for science. Through this process, we can truly promote additional information that our students can use to better understand the science behind growing fruits and veggies at age appropriate levels.

 

Western Growers has launched the Careers in Ag Program to encourage students to pursue science, technology, engineering and mathematics (STEM) careers in the Arizona and California agricultural industry. In a world where agriculture labor shortages are frequent and expected to grow, how important are STEM students to the future of agriculture?

I have been a strong advocate for STEM education since being elected and have sponsored a number of bills to foster more students to develop those skills. In 2012, I introduced and the governor signed HB 2697. This bill helped create an alternative pathway to getting teachers in our classrooms much sooner if they demonstrate adequate knowledge of a particular STEM subject through a postsecondary degree or relevant coursework. Applicants with who met the qualifications in the bill didn’t have to go through the regular time-consuming process to receive their teaching certificate and we were able to address teacher shortages in the areas of STEM education in Arizona.

In 2014, I introduced SB 1288 that said science should be considered on a student’s statewide education assessment in addition to reading and math. The thinking was that if science were part of a student’s letter grade, the subject would be taken, more seriously. Science is truly a part of agriculture and these education strands definitely go together.

Just last year, I worked with the Arizona Chamber of Commerce on SB 1502 which requires the state board of education to issue a specialized standard teaching certificate in career or technical education that includes agriculture if they meet certain requirements. This was important because there is a teacher shortage and some vocational classes had to close. In essence, it encourages experts in vocational education to go right into teaching.

 

You have had the unique experience to have served in the government in both Arizona and California. Can you elaborate on the difference in experiences you had regarding the legislative, regulatory and political environments in each state?

There are major differences in general when we talk about the legislative, regulatory and political environments in both states. I certainly feel more comfortable at home in my home state of Arizona in terms of the political and regulatory environment. The Arizona Senate feels like home to me since I spent five years here as a staff member. As the Senate Majority Leader, my office is now on a different floor, but the legislative process is something I can do in my sleep. And the people here are like family to me. I love my job and what I do every day. It is a great honor to serve the people of District 20.

I made friends in both California and Arizona and that has helped me understand the basic issues agriculture faces in both states. When I met with Western Growers’ board members and staff during the first week of April when they were visiting Phoenix during your Arizona Leadership Meetings, I was able to see friends from both places! I was honored to have met with so many Western Growers board members. We had wonderful conversations and I hope to continue those in the months to come.

 

How do you describe your ideology?

I am a fiscal conservative and believe in small government, family and family values. Free markets are important whether we are talking about schools or business. I truly believe in and try to uphold all of these values when I work on bills every day.

 

Arizona produces a wide variety of fruits, vegetables and tree nuts. What are some of your favorites?

I love buying Arizona grown fruits and veggies. Our family eats all types of veggies and we especially love salads. We make some of our favorite salads using Bibb or Butter lettuce. I also buy apples on a weekly basis. That takes me back to the days when I was living in Sacramento. I would make fall trips to Apple Hill, which was just a short drive away. It brings back good memories and reminds me of fall and the beautiful apple orchards.

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IRRIGATION INNOVATION: Efficiency Main Driver of Product Advancements

May 15th, 2017

With California setting new records this year with regard to rainfall, one might think that irrigation concerns would be a lower priority item for the time being. But that really never is the case.

Creating efficiencies in one’s irrigation program is always top of mind for the grower…and for the manufacturer, who is constantly trying to stay a step ahead and anticipate the growers’ needs. Whether dealing with innovations with drip, sprinkler or any other irrigation method, reducing grower costs is typically the horse that pulls the wagon.

 

Drip Irrigation Trends

Chuck Bates, senior product manager for Netafim USA, recently noted that while water use efficiency has always been the number one motivator in irrigation innovation—and is still very important—another factor in the process has moved to the head of the class. “Right now the biggest driver is reduction in labor costs,” he said. “Growers are re-evaluating their approach to irrigation in light of rising labor costs.”

Bates explained that the use of drip irrigation in agriculture has moved well past the experimental stage and is now a mature industry. As such, there are literally decades of experiences to draw upon. For more than a decade, the drip irrigation process that has received the most traction has been the use of thin-wall drip lines multiple times. The Netafim executive said most growers have a well-rehearsed process of laying the drip line, retrieving it at the end of the season, rolling it up and then laying it again for the next crop. A typical drip line will last seven to 10 uses, he estimated, with some lines lasting even longer.

“But labor costs have skyrocketed and there is so much labor involved in retrieving the tape, fixing the leaks and re-rolling it up that it has become cost-prohibitive.”

Instead Netafim has developed a single-use tape that Bates said makes more sense economically for most row crop growers. “Labor costs have mushroomed with minimum wage and overtime costs continuing to go up,” he said.

The single-use tape is a bit cheaper because it is made of thinner material, but Bates said the more important advantages are in labor cost reduction, disease prevention and the efficiency of the system itself. He noted that even though the multi-use tapes are thicker and are repaired after every use, there still is a drop in efficiency each time they are retrieved and re-installed. There is also the risk of spreading pathogens as laborers move through the field retrieving the tape and laying it back down at a later date.

But he said it is the labor costs that appear to be the biggest driver. When retrieving a tape that is going to be reused, the retrieval system has to slow down to minimize rips and tears in the drip line. Even so the entire line has to be inspected and repairs made before it is rolled up and stored for future use. With a single-use tape, Bates said it is retrieved from the field very quickly and then recycled. The next tape comes from the manufacturer ready to install with minimal issues.

There was a time when the cost of the tape might have justified the expense of reusing it. Bates said that is no longer the case in most situations.

Netafim first piloted the single-use tape in June and July of 2016. It performed so well and made such economic sense that they rolled it out commercially less than two months later. Since then thousands of acres have been planted with the single-use tape providing crops with their water needs. Bates said the company was first to market with its single-use drip line, but admitted that competitors have followed suit. He added, “We have a robust solution that drills down into the economics so that a grower can see the savings.”

He added that the irrigation system also includes the firm’s proprietary “FlexNet flexible piping solution,” which is an end of the row water delivery system designed specifically for drip irrigation use. Typically, Bates said growers have used a water discharge system adapted from other irrigation uses. He said Netafim’s solution for drip systems is this flexible pipe made out of a lighter material that lays flat and is much easier to handle in the field. He said the typical six-inch Natafim pipe weighs 79 pounds compared to 300 pounds for a similar length of the traditional pipes.

In addition, he said this pipe has been designed for drip lines and does not need to be retro-fitted, which is a potential source of leaks. And he noted there are also labor savings associated with the use of this system.

 

Solid-Set Sprinklers Adding Efficiencies

Automation is in its early stages for solid-set irrigation systems, but it promises huge advantages in the future, according to John Rowley, Rotator product line manager for Nelson Irrigation. The veteran water expert said automating an irrigation system offers opportunities for water efficiency, labor savings and, most importantly, improved crop production.

He explained that most sprinkler irrigation systems, which is the area of focus and expertise for Nelson Irrigation, rely heavily on the human element. Turning valves on and off is a time-consuming project, and scheduling that work can be problematic. While the plants needs are obviously taken into consideration, the ability to schedule the work is a big factor.

As systems are automated, Rowley said applying “exactly the right amount of water at exactly the right time” opens the door to labor savings, decreased water use and optimum crop production.

Nelson does have products on the market that can move a grower in this direction. And he said growers appear primed to up their irrigation systems. In fact, in the last year, Nelson representatives have noticed an increased use in check valves and regulators. These additions to a sprinkler system allow a grower to more precisely regulate water flow adjusting it for crop and weather conditions. Without getting too technical, Rowley said a specific pressure can be dialed in during germination when droplet pattern size can optimize the process, while a different pressure can be utilized as the crop grows. Often these check valves and regulators are combined with closed systems that result in huge water savings.

Rowley said the willingness to invest in this additional equipment proves that growers are interested in taking the next step to improve the delivery of water to the crops. He believes a big step toward automation is on the horizon. Already, Nelson has developed equipment that can automate the turning off and on of valves. Typically, there is a valve for every acre or two of production. On 100 acres that means 50-100 valves. It can take two-three minutes per valve to turn it off and on and then there is the additional travel time between the valves. Rowley said during germination process in the heat of the summer in some of California’s hottest areas, these valves have to be turned on and off several times a day. Obviously automation would be a big labor saver.

But Rowley is even more excited about the improved crop production that can be associated with increased water use efficiency. More precise watering, he says will produce better crops at a lower cost. Less water will be used and plants will thrive when the water can be delivered at exactly the right time and not be dependent on an irrigator moving through the fields or orchards and manually opening or shutting valves as he gets to each location. “When you have complete control over the water you deliver and can precisely determine the water depth you want for each plant that opens up a whole new area of efficiency. There is no question that when you can manage soil moisture better, you improve production.”

While Rowley believes irrigation automation is only in its infant stages, he expects great progress in a relatively short time frame.

Like much else in agriculture, necessity is the mother of invention. Increasing labor costs just may be the driver needed to move irrigation systems to the next level of efficiency.

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Expanding AgTech…Beyond Salinas

May 15th, 2017

Salinas may be proximate to Silicon Valley, but it certainly does not mean that technology has to originate there. To be successful, tech must expand to all areas where specialty crops are grown.

Though many farming operations throughout California have been open to working with agtech startups, the testing and use of new products and services is still the domain of the “early adopter.” Agtech must be more widely adopted as a means of accelerating the pace of technologies that will serve the entire industry. Western Growers is working to affect that change.

Couched between Monterey County and the Silicon Valley, the Western Growers Center for Innovation and Technology (WGCIT) was born in the ideal region for cross-pollination between the ag and tech sectors. Salinas, the “salad bowl” of the United States, has provided the foundation needed for agtech companies to connect with farmers and perfect their innovative solutions to the biggest challenges facing the ag industry. As the center goes into its second year, we are looking to build on that foundation by spreading the benefits of agtech to other regions throughout California.

On March 27, we hosted a “Deeper Dive” Forum in Fresno, Calif., where farmers and agtech startups came together to delve into the water management challenges facing the agricultural sector and the obstacles that water technologists are overcoming to create real solutions that work for the Central Valley region and beyond. This wasn’t your typical agtech event that showcases all types of technologies; this event was focused on one topic: water technology for agriculture.

With 160 people in attendance, the forum kicked off with a keynote address from A.G. Kawamura of Orange County Produce about the importance of the adoption of technology, as well as collaboration. The forum then flowed to a panel where Central Valley farmers had a candid discussion about the pressures growers face regarding water on the farm and what technologies they seek to help relieve those pressures. Don Cameron of Terranova Farms, Cannon Michael of Bowles Farming Company, Steve Patricio of Westside Produce and Stuart Woolf of Woolf Farming & Processing spoke about everything from desiring technology that notifies farmers of problems to advising developers to be flexible and meet farmers during their evening down time or on weekends.

A water technologist panel then came together where WGCIT residents such as Kevin France from SWIIM and Manu Pillai of Waterbit were part of a discussion on the “pain points” technology providers face. They discussed the need for growers to engage in problem solving with honest startups. The final “collaboration panel” attempted to tie the first discussions together with some brainstorming on the strategies and tactics that farmers AND technologists might utilize to better work together to solve issues surrounding water.

The purpose of the event was to drive and advance innovation and collaboration in water management technology…and it certainly did. This event was truly a group effort. Not only between farmers and innovators, but among the community. The City of Fresno, Fresno State University, Fresno Chamber of Commerce, Fresno County Farm Bureau and Fresno Food Expo partnered with WG, AT&T, Forbes and the Mixing Bowl to bring this event together—all with the common goal of identifying the success and barriers to technology adoption and how it might be accelerated in the ag sector.

This event was the first effort of our new solutions-orientated approach to actively seek out technologies that meet farmers’ exact needs and solve agriculture’s most immediate challenges. Moving forward, we want to continue to identify and zero in on specific technologies, that solve specific ag problems, in specific regions.

We plan to do more of these short, one-day sessions here in California and soon in Arizona. In the future, we will be focusing on topics such as mechanization and food safety. The Center for Innovation and Technology plans to take the show on the road to engage growers and technologists in collaborative efforts to solve local and industry wide problems. Stay tuned!

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Tailwater Systems: Nitrate Remediation…in Your Backyard

May 15th, 2017

Problems with nitrates in your wastewater or well water? Tailwater Systems has you covered. The agtech start-up company designs, builds and operates high-performance bioreactors for removing nitrates and other contaminants from field drainage and drinking water wells. The systems are compact and can be placed anywhere—in a field, next to a greenhouse or near a lift station.

 

THE BEGINNINGS

The concept for Tailwater began in March 2014, when John Skardon was helping a fellow faculty member at California State University, Monterey Bay (CSUMB) to maintain a woodchip bioreactor to remove nitrates from surface runoff. When working on the project, one question continually popped up in Skardon’s mind: is this the most efficient and cost effective method for removing nitrates and other contaminants?

He decided to take action.

“I spoke to ag association representatives in the Monterey County and Central Valley area and learned that there was no workable solution for farmers or property owners to solve the nitrate problem,” said Skardon. “I wanted to find a low cost and simple technology that could be powered by solar panels and have the ability to reduce nitrate levels well below the state and federal limits.”

Skardon, a chemical engineer by training, knew that water treatment facilities around the world had been using biological remediation for nitrate and phosphorus for many years. However, all these existing remediation systems were incredibly large, treating hundreds of thousands to millions of gallons of water per day. He reasoned that if these systems could be downsized without loss of performance, the agricultural community might finally have a very competitive solution to the nitrate problem. Skardon noted that a 2010 report from UC Davis about treatment options for nitrate in drinking water clearly showed the economic advantages of a biological approach to treating these water contaminants. However, the report did not go into the details of the many types of biological treatment systems.

Skardon applied for and received a grant from the U.S. Environmental Protection Agency to work with students at CSUMB to develop a small scale bioreactor that can be located at the edge of a field so that farmers can treat the waste water before it leaves their property.

Working hand in hand with undergraduate students at CSUMB, including Hunter Burnham who played an integral role in the development, Skardon was successful in scaling down the systems to an extremely small footprint. “Not only did it work, but the denitrification rate was close to the rates achieved by industrial scale systems. Further, the systems required a very small footprint, produced no brine or waste and consumed a very modest amount of power,” noted Skardon.

Right then and there, in May 2016, Tailwater Systems was born.

 

FIRST COMMERCIAL SYSTEM OPERATIONAL

Tailwater Systems recently completed the build of a fully functional bioreactor at a commercial greenhouse operation in Watsonville. At this particular greenhouse, the water flowing out of the irrigation well contained a nitrate level that was seven times higher than the allowable limit of 10 mg/L NO3-N.

“We plumbed the irrigation well into the bioreactor and started the system. The bioreactor reactor was sized to accommodate two hours of flow rate (called the residence time). The nitrate level was reduced by 92 percent to about 5ppm, or 50 percent below the legal limit,” said Skardon.

The bioreactor at the greenhouse can process five gallons per minute and fits into a 10 x 10 square foot area. The systems can be easily scaled from up to 50 gallons a minute.

With the engineering and technology perfected, Tailwater Systems can build a bioreactor on the grower’s site in four to eight hours. Limited site preparation is required and the system can be moved from site to site. The company provides monthly maintenance and servicing of the bioreactor.

The startup is looking to partner with farmers and property owners in the Salinas Valley and Central Valley to help tackle the nitrate issue. “We are taking away the pain growers have with trying to meet the nitrate standard. Our systems will do everything you need to meet county, state or federal requirements for nitrate,” said Skardon.

 

THE NEXT STEP

Beyond reducing nitrates in surface drainage, Tailwater Systems also works well with subsurface drainage, well water and treating other contaminants including phosphorus, sediment and iron. Additionally, they are attempting to solve the pesticide problem and are currently developing a proprietary approach to remove and destroy these chemicals using bioremediation techniques.

In an effort to build their network of relationships in the agriculture industry, the startup joined the Western Growers Center for Innovation & Technology in December 2016.

“We are so thankful for all the support we’ve received from the industry thus far,” said Skardon. “We hope that by being in the Western Growers Center we can continue to work together with growers in the Salinas and Fresno area to promote this system. We have a solution better than anyone else and are right here in your backyard!”

Tailwater Systems is among 36 start-up companies in the Center for Innovation & Technology looking to solve agricultures more pressing issues, such as water quality. For more information about Tailwater Systems’ compact denitrification systems for water purification, visit www.tailwatersystems.com or contact John Skardon at [email protected] or (831) 204-8140.

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100 Years of Serving Growers

May 15th, 2017

Naturipe Berry Growers Inc.

Salinas, CA

Member Since 1972

 

AN AUSPICIOUS START: It was in 1917 when a group of Bay Area growers submitted official papers in downtown San Francisco to form Central California Berry Grower Association (today known as Naturipe Berry Growers), a marketing cooperative owned by growers and dedicated to growers. At the time, the Santa Clara Valley, south of San Francisco, was the epicenter of many California crops, including strawberries. The founding families of Naturipe, in large part, were Japanese-American. So much so that the original charter was presented in both English and Japanese.

From the start, Tom Am Rhein, current day vice president of Naturipe Berry Growers Inc., said the firm had an immediate presence. Many of the top growers of the day joined the co-op and it got off to a fast start, and was a strong player in the industry.

Am Rhein said the guiding principles that were the foundation of the firm 100 years ago are still very much evident today. “We exist to support growers in their efforts to bring product to market. And we do so with integrity, high quality and transparency.”

He emphasized that “integrity is the fundamental philosophy” that drives Naturipe and always has. “As our CEO, Richard Amirsehhi, says: ‘Do what’s right, and do it all the time!’”

 

THREE SEMINAL MOMENTS FOR NATURIPE: As he surveyed the last 100 years, Am Rhein noted three pivotal times in the company’s history, two of which were adversities that had to be overcome. “World War II was certainly very important.” The Naturipe executive said the internment of many of the firm’s growers dealt the company a blow. But it did carry on and was able to help Japanese-Americans restore their farming operations after the war, allowing them to get their lives back on course.

He also cited the development of the interstate highway system, which allowed fresh berries to flourish. Prior to the ability to ship produce from coast to coast in an expedited manner via trucks and the highways, Am Rhein said strawberries were largely a processed product. In 1956, funds were authorized to start building the interstate system with the original routes built over the next three decades. And it has been expanded ever since, as has the production of strawberries.

It was only a couple of years later that the California strawberry industry was almost wiped out. Am Rhein said disease issues delivered a catastrophic blow to strawberry growers in the 1957/58 season. But Naturipe survived and Am Rhein said the company has seen a steady growth in production, sources of production and growers ever since.

 

BUSINESS CHANGES: A century is a long time to be in business and though Naturipe Berry Growers is essentially performing the same basic task today that it did in 1917, there have been quite a few changes in the business environment that has impacted the firm. At some point along the line it transitioned from the co-op format to a corporate business model. Am Rhein said the shift kept the ownership intact, but accounting regulations dictated the move as a more efficient and economically-prudent way to operate.

And in 2002, Naturipe Berry Growers joined the grower-owned partnership of Naturipe Farms. Today Naturipe Farms is the sales and marketing arm which encompasses the many different regions, crops and entities that make up the operation. The expansion in South and Central America has largely occurred since the beginning of this century and has been transformational for the berry category. Strawberries, always a top performer at retail, now lead what is often called the produce department’s top money-maker.

Am Rhein said under its umbrella, Naturipe Berry Growers and it’s grower-owner partners in Naturipe Farms grow and represent berry growers from Canada’s British Columbia to Chile. More than 1,200 growers have their fruit marketed under the Naturipe label with the four berry crops—strawberries, blueberries, blackberries and raspberries—the goal always being to be a single source of fresh berries 365 days a year.

Cranberries are also marketed under that label and from time to time Naturipe has represented other produce commodities. “It’s always because it is a service to our growers,” Am Rhein said. “Typically, they have complimentary crops and they have asked us to sell them.”

 

CHALLENGES & OPPORTUNITIES: Am Rhein admits that California has some issues with regard to regulations and cost structure that provide challenges. But he also believes that technology can be the difference maker. “So much is coming so quickly in the area of technological advances. Increased costs will force big changes. I see huge changes over the next generation in the area of mechanization.”

He added that Naturipe Berry Growers “given its history, knowledge and integrity” is perfectly positioned to capitalize on those changes.

 

A BRIGHT FUTURE: Am Rhein has been watching the progress of Naturipe Berry Growers since he joined the co-op as a producer in 1980. His involvement grew which culminated in his employment with the firm commencing about a dozen years ago. Today, he continues to manage a farming operation as well as holding his vice president slot with Naturipe Berry Growers Inc.

From his perch, he sees a bright future. “The strawberry and berry industry remains very strong,” he said. “We have a high quality product and high quality growers and I see a great future. I believe there is a lot more potential to be realized.”

Am Rhein likened the berry industry’s progression to that of the early settlers marching across the plains to reach the Pacific Ocean, at which point they ran out of places to go. “We are not at the Pacific Ocean yet; we are still in the middle of the plains.”

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PACKAGING THE BRAND

May 15th, 2017

By Chris Passarelli

One cannot overstate the importance of packaging to your overall brand. The most successful agriculture companies leverage their packaging brands as premium consumer value-adds to differentiate their commodities and gain a competitive advantage in the market. Marketers use creative elements and innovative packaging to set their products apart from the pack, build individual brand identity and assure commercial success. This often opens up future business opportunities, such as the sale of a brand or business.

But this does not happen overnight—it is the product of a carefully planned and executed branding and protection strategy. At the core of such branding strategy lies intellectual property (“IP”) protection.

 

Maximizing Brand Value

Farmers are no strangers to IP protection, being among the most sophisticated developers and users of technology and know-how. But there are myriad forms of IP present in a shifting legal landscape, and most of us are more concerned about production and final product, rather than protecting a package. However, the package holds untold value potential which must be identified, nurtured and protected via IP legal channels, in order to realize the full competitive value of the brand.

 

Forms of Intellectual Property in Packaging

Packaging IP law deals primarily with patents (covering utility or designs), trade secrets (confidential information and know-how), copyrights (creative content) and trademarks (anything that identifies the source of goods or services). Within the area of trademarks resides a subset of protection known as trade dress, distinctive characteristics of a product or package which qualify for exclusive legal protection as against unauthorized use by others.

There are various advantages and disadvantages surrounding the various forms of IP protection. Utility patents, for example, can be rather expensive to acquire, maintain and enforce. Furthermore, while innovative or ornamental aspects of packaging can qualify for patent protection, such protection is not a right to practice the invention or use the ornamental design, but rather a right to exclude others from doing so (cue: the litigators), and such protection has a finite term. Trade secrets can be highly useful, but in the ag packaging context, there is the significant risk of reverse engineering, which is a completely lawful method to strip away trade secret enforceability.

For such reasons, it is packaging trade dress—a potentially infinite, highly flexible mode of IP protection for packages—which is the focus of this article. Trade dress is a subset of trademark protection for product and packaging features, for which registration is relatively inexpensive to obtain.

 

Packaging Trade Dress Protection

Packaging trade dress protection is easier to obtain than product trade dress protection, as the courts have recognized that packaging plays a central role in consumer perception as to the source of a given product or service. Thus, distinctive packaging designs, colors and shapes are often the subject of trade dress registration at the federal level.

 

Federal Registration for Packaging

Any distinctive packaging or packaging feature can and should be registered at the U.S. Patent and Trademark Office (“USPTO”) as soon as possible to solidify your asset(s) and begin to enjoy the myriad benefits attendant to registration. Applications for registration are often strategically filed immediately after a packaging design has been conceived, even years prior to the initial rollout, on the basis of “intent to use”—which can afford the owner upwards of three years of “runway” before a given packaging design comes on the market. Once the package is being used in interstate commerce and federal registration is obtained at the USPTO, a further registration through U.S. Customs and Border Patrol is available and often recommended as a protective measure against potentially infringing importations.

 

The Advantages of Registration

The importance of packaging trade dress registration cannot be overstressed. Federal registration affords very significant advantages to the brand owner, including: (1) constructive notice to others regarding your claim of ownership; (2) qualification for registration with U.S. Customs; (3) the ability to use federal registration notice, “®”, to deter infringers and provide for enhanced damages; and (4) the legal presumption of ownership and validity of the trade dress in question.

This final item (4) is of huge practical importance in the context of enforcement and litigation—without the presumption, a brand owner must prove ownership and validity of its trade dress. This can entail a massive operational exercise in proving up historical sales of products in the given package, as well as, the geographic territories, dates of sale and purchase information required in order to prove one’s unregistered (“common law”) trade dress rights to the satisfaction of the court. Thus, there is an enormous tactical advantage, deterrent and potential cost savings attendant to federal registration which is initially somewhat difficult to perceive.

 

Foreign Registration

Finally, nowhere is registration more important than the rest of the world. In much of the world outside of the U.S., intellectual property rights—and in particular, trademark, trade dress and other design rights—arise from registration, not use in the marketplace. Thus, in these jurisdictions it is the first to file an application which gains the superior right, not necessarily the party who first develops a package design. Via international treaties such as the Paris Convention, domestic entities can obtain their U.S. priority filing date in numerous other countries within six months of filing the U.S. application. This can be an invaluable mechanism for preserving one’s earlier filing date in much of the world, where the application filing date trumps all else in terms of packaging IP rights.

 

The Big Picture: Asset Development

As with trademarks, the inherent value of trade dress ultimately depends upon consumer recognition (i.e., “goodwill”), which in turn is a function of the degree of one’s marketing efforts and the length of time of a given package in the marketplace. Over time, trademarks and trade dress can grow from relatively inexpensive assets, to the most valuable form of IP—essentially a “crown-jewel” asset for your business which is heavily factored into its valuation and provides for future opportunities in terms of licensing, co-branding, and ultimately—mergers and acquisitions.

What packaging assets remain unidentified and unprotected in your operation? Seek competent IP counsel to advise, and if appropriate, to register your packaging assets as soon as possible for optimal market position.

 

Want More?

For more of the latest information on packaging law and design, including intellectual property and the importance of protecting your brand, food labeling compliance and the risks of litigation, offerings in packaging materials and choosing them wisely, and design techniques that set your product apart and engage consumers, come to one of the three upcoming presentations of The Produce Packaging Seminar, free of charge to WGA members: www.producepackagingseminar.com.

 

California native Chris Passarelli grew up “on the farm” in the ag regions of the San Joaquin and Napa Valleys, and now acts as an intellectual property counsel to the industry—protecting brands, trade secrets and technology for major food and beverage producers, ag marketers, suppliers, and partners as Senior IP Counsel at Dickenson, Peatman & Fogarty. Contact Mr. Passarelli at: [email protected].

 

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Wellness Benefits: Don’t Underestimate Their Value to Employees

May 15th, 2017

By David Zanze

If you don’t offer them already, could it be that you consider wellness a lightweight option when it comes to reducing health care spending and not worth the additional cost? The reality is that many employers offer wellness benefits to keep costs down and employee morale up. Wellness initiatives can cover a variety of services including health risk assessments, gym discounts, chronic disease management, company health centers, wellness challenges, health newsletters, and more.

 

Reducing employees’ need to access more costly care.

While the trend lately is for employers to shift rising healthcare costs to employees through high deductible health plans, this strategy can backfire if it becomes too costly for employees to bear. Studies show that employees will avoid going to the doctor if it is cost prohibitive. This can be costly to your plan and your employee when early signs of a chronic health condition are ignored because it is too expensive to see a doctor. Employees diagnosed with chronic health conditions make up 75 percent of all healthcare costs. Lack of physical activity, poor diets and tobacco use are directly responsible for 70-90 percent of chronic diseases.

By offering a wellness program and promoting good health habits, it gives the power back to employees to achieve and maintain good health. Healthier employees tend to see the doctor less often, which means less out-of-pocket costs for them and lower health care costs for you!

 

Lowering absenteeism.

Lower absenteeism is another benefit that can result from implementing a wellness program. By having fewer employees call in sick due to health issues, you can reduce overtime payments to cover for the absence. In a 2016 research report by The Centers for Disease Control and Prevention (CDC), their survey results revealed that small group employers (100 or less employees) experienced absenteeism rates of six days per employee who had diabetes and up to 31 days per employee with obesity, costing them $1,621 for diabetes and $8,065 for obesity for sick days alone. Offering a disease/care management program to address specific chronic conditions for your employee population can go far in reducing absenteeism rates and healthcare spending.

 

Reinforcing good health habits for better productivity.

In addition to cost savings, a wellness program can enhance employee productivity. When employees are reminded of good health habits, such as taking a walk on their breaks, replacing processed, sugar-filled foods with nutritious whole foods and managing their stress better, the results are happier and more productive employees. According to a survey of 20,000 employees by Brigham Young University, employees who rarely ate fruits and vegetables were 93 percent more likely to have a higher loss of productivity. The survey also found that employees who had difficulty exercising during the day were 96 percent more likely to experience a productivity loss. By offering wellness challenges (with incentives) that encourage employees to eat better, exercise more, and stress less, in combination with a wellness newsletter, it reinforces the importance of practicing good health habits and making their health a priority.

 

Make it easier and more affordable to see a doctor.

Lastly, if you don’t currently have health insurance coverage through Western Growers Assurance Trust (WGAT), you may be missing out on an opportunity. Exclusive to all WGAT participants and Cedar Network purchasers, the Cedar Health and Wellness Centers offer extended hours, lower copays, bilingual providers and free prevention services. The centers are in Salinas, Watsonville, Santa Maria and Oxnard, and can work in conjunction with a wellness program to provide employees with easy access to quality and affordable health care to save them time and money.

In summary, don’t underestimate the impact a wellness program can have on your bottom line! It can reduce health care costs and lower employee absenteeism rates, increase their productivity and show your employees that you care about their health and well-being—that’s a win-win every way you slice it.

For more information about the benefits of having WGAT as your choice of health insurance, or for wellness programs available through WGA’s subsidiary company Pinnacle Health Management, contact 800.333.4WGA.

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How Does the UFW Still Have Influence in Sacramento?

May 11th, 2017

Two recent court judgments against the United Farm Workers (UFW) have floated past most of the news media, and apparently our elected lawmakers in Sacramento, without a hint of irony. In March, the Monterey County Superior Court awarded more than $1.1 million in penalties and unpaid wages against the UFW stemming from a class action claim that the union misclassified as “exempt” 23 of its own employees and failed to pay them overtime or let them take lunch breaks. And just last month, the same court ruled that the UFW must pay another nearly $800,000 in attorney fees that were incurred by the plaintiff during the two years of litigation.

The irony is obvious, but should be stated: A union that justifies its political agenda by perpetuating myths about farmers mistreating their employees, has been found guilty of mistreating its own union employees by engaging in what amounts to wage theft.

The responses from Democratic legislators in Sacramento? Nada. Zip. Zero. Zilch. 

These are some of the same legislators who slandered California farmers last year in pressuring their colleagues – many of whom had voted once before to block what they knew to be a bad piece of legislation – to vote for the overtime bill, AB 1066.  They parroted the UFW’s tired rhetoric and elevated its stature far beyond the reality of a union that represents just 7,000 dues-paying members, or 1% of California farmworkers; a union that has had more farmworkers vote against it than for it for many years.

Senate President Pro Tempore Kevin de León evinced no shame when, on the floor of the state Senate, he said: “The great pride that we share in California’s world-renowned agriculture industry is tempered by the shameful plight of the farmworker today.” De León said farmworkers are “among the least paid and most exploited in our nation,” and that there are “a lot of farmworkers who don’t even receive the minimum wage.” He alleged that their working conditions are “abysmal,” their housing “substandard,” and their healthcare “nonexistent.” Multiple times, he accused agricultural employers of “often” using child labor.

Is Kevin de León talking about California agriculture? Does he actually know any Western Growers members?

Surely, the answers to both questions must be “no.” Because, if he did, he would know that the average wage rate for California field workers was $12.65 last year, 26.5% higher than the then-$10.00 state minimum wage. He would know about the middle-to-upper-middle class career opportunities our members provide for farm workers and other rural Californians, ranging from farm managers to field supervisors to irrigation foremen. He would know that 97% of Western Growers companies offer vacation and sick pay, 85% offer an annual bonus plan for field workers, and 77% offer a 401(k) plan (most with matching employer contributions). And he would definitely know about the Western Growers Assurance Trust, the largest healthcare insurer of farmworkers in the country, even before the Affordable Care Act made health insurance mandatory.

So, how is it that this union-in-name-only, that cheats workers out of wages, still has such outsized influence in Sacramento?

It’s not like we in agriculture are the only ones to point out the absurdity of the UFW. Earlier this year, William Gould resigned as chairman of the Agricultural Labor Relations Board, in part because of his frustration that only one petition for unionization had come before the board during his three-year tenure. He told the L.A. Times that “the board spent more of its time on petitions from workers trying to kick out the UFW than on petitions to join the union,” and added that the UFW has “absolutely no interest in organizing the unorganized.”

The simple truth is: California farmers value their employees greatly. They provide for good compensation and benefits, because they know that Americans won’t do farm work. Contrary to what Kevin de León and like-minded legislators believe, our industry has evolved since the days of the Delano grape and Salad Bowl strikes. The tension and conflict that gave rise to Cesar Chavez are long gone, replaced by a sense of partnership and common endeavor among farmers and farm workers alike.  There are many reasons the UFW has so few dues-paying members, none more obvious than the fact that farmworkers don’t want to pay 3% of their paychecks to a union when their employers are paying fair wages and providing reasonable benefits. 

The legacy of the UFW is no longer the reality in California. They no longer represent farmworkers. It is time for our elected leaders to recognize this fact and recalibrate the influence of this union.

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Western Growers Rolls Out New Online Invoicing System

May 9th, 2017

It’s that time of year again for membership renewals, but this year we are changing things up. We are excited to provide you with the option to renew online via email notification. This is designed to simplify the experience, save time and money, and provide a secure, fast and easy solution for your renewal.

All members should have already received their emailed renewal notices. If you have not yet received your renewal notice, visit www.wga.com/updatemyinfo to make sure we have your most current contact information.

Thank you in advance for your membership renewal and continued loyalty in Western Growers. We pledge to do our best to continue to fight for your interests in the years to come.

For questions, please contact Rob Steinmann at (949) 885-2266.

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May 24 Lunch & Learn Discusses Best Practices for Bee Safety

May 16th, 2017

Honey bees play a key role in the pollination of several specialty crops, and on May 24, you can explore best practices for keeping bees healthy and increasing their population.

Colony numbers have changed over time due to several challenges, including parasites, diseases, less genetic diversity, lack of forage diversity, poor bee nutrition, exposure to pesticides and migratory stresses. During out next Lunch & Learn webinar, we will discuss opportunities and comprehensive solutions that are meant to contribute to healthy and increasing bee populations, which will ultimately benefit bees, beekeepers, applicators, producers and consumers.

Stephanie Regagnon, CEO of FieldWatch, will provide an overview of current issues and best practices. She will also cover different stewardship efforts that connect a variety of stakeholders and enhance collaboration and communication.

Don’t miss this opportunity! Join us to hear about this topic and to ask questions.

WEBINAR DETAILS

How are producers, applicators and beekeepers working together?

Speaker: Stephanie Regagnon, CEO, FieldWatch FieldWatch, Inc.

Date: Wednesday, May 24, 2017

Time: 11:30 AM – 12:30 PM PDT

RSVP: CLICK HERE TO REGISTER

Participation is complimentary and available only to WG members.

For more information, contact Sonia Salas at (949) 885-2251.

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Aerial Imagery for Agriculture to be Detailed in May 23 Tech Talk

May 9th, 2017

During this month’s Tech Talk, TerrAvion will reveal how to utilize aerial imagery to make farming operations more profitable. TerrAvion Vice President Bob Westbrook will discuss how their aerial imagery subscription service delivers weekly images at plant or row-level resolution to guide management, agronomy, pest protection and forecasting.

TerrAvion, an agtech startup in the Western Growers Center for Innovation & Technology, provides growers with up-to-date maps and data of fields to help growers direct resources more efficiently and save time. For example, a grower can look at a photograph of a field provided by TerrAvion and compare it to images taken of the same field throughout the season. If they see yellowing in the middle of an area that was not there the week before, they can visit that field to determine the problem and solve it.

During the Tech Talk, Westbrook will provide an overview of the key services, including:

  • High Resolution: Row level resolution lets growers see what’s really happening.
  • Lowest Prices: No one has published or quoted lower prices on imagery than TerrAvion’s standard prices.
  • Themography: See water (or lack thereof) before it damages plants.
  • Reliable: Unlike satellites and drones, TerrAvion work around clouds so delivery of imagery remains consistent.
  • Most Images per Season: To help growers make decisions every week.

For more information about how the service works, read the “Aerial Imagery: Using ‘Old’ Technology for New Analytics” story in WG&S Magazine and join us for the Tech Talk on Tuesday, May 23, 2017.

EVENT INFORMATION

TerrAvion Tech Talk®

Date: Tuesday, May 23, 2017

Location: Online or in-person.

Online: you will be emailed a link when you register.

In-person: Western Growers Center for Innovation & Technology (150 Main Street, Suite 130, Salinas, CA 93901)

Time: 3:00 PM – 4:00 PM PDT

RSVP: To attend in-person, please RSVP to Emily Lyons at [email protected].

To attend online, please register here.

Tech Talks, which are offered at no cost, are hosted by the Center to introduce WG members and the community to the latest innovations. For more information about the Tech Talk Series or the Center, contact Hank Giclas at (949) 885-2205.

 

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Help WG Foundation Win USA Today Networks’ Grant — Voting ENDS Friday

May 9th, 2017

In an effort to seek more creative alternatives to raise funds, the Western Growers Foundation has entered “A Community Thrives (ACT)” video contest, hosted by the USA Today Network. As our submission, we posted a video about the importance of helping schools create and fund edible school gardens.

You can help by voting for the Foundation’s video on the ACT website! Voting began on April 12 and ends May 12. We encourage you to return to the ACT website each day to vote for our video, as well as a share it on social media, asking your friends and family to vote.

The Foundation’s average school grant is $1,000; winning this contest could help us fund more than 50 edible school gardens throughout California and Arizona. Our goal for this year is to expand the Foundation so that we impact more kids and develop further interest for careers in ag.

CLICK HERE TO VOTE FOR THE WG FOUNDATION VIDEO

Please Note: It may take a few moments for the video and “Vote” button to load. If you are having trouble viewing the video, please refresh the page. 

For questions, contact Alyssa Luu at (949) 885-2284. 

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Producers, Applicators and Beekeepers Supporting Bee Health

May 18th, 2017

Honey bees play a key role in the pollination of several specialty crops, and on May 24, you can explore best practices for keeping bees healthy and increasing their population.

Colony numbers have changed over time due to several challenges, including parasites, diseases, less genetic diversity, lack of forage diversity, poor bee nutrition, exposure to pesticides and migratory stresses. During out next Lunch & Learn webinar, we will discuss opportunities and comprehensive solutions that are meant to contribute to healthy and increasing bee populations, which will ultimately benefit bees, beekeepers, applicators, producers and consumers.

Stephanie Regagnon, CEO of FieldWatch, will provide an overview of current issues and best practices. She will also cover different stewardship efforts that connect a variety of stakeholders and enhance collaboration and communication.

Don’t miss this opportunity! Join us to hear about this topic and to ask questions.

WEBINAR DETAILS

How are producers, applicators and beekeepers working together?

Speaker: Stephanie Regagnon, CEO, FieldWatch FieldWatch, Inc.

Date: Wednesday, May 24, 2017

Time: 11:30 AM – 12:30 PM PDT

RSVP: CLICK HERE TO REGISTER

Participation is complimentary and available only to WG members.

For more information, contact Sonia Salas at (949) 885-2251.

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WG Closed Monday in Honor of Memorial Day

May 25th, 2017

All Western Growers offices will be closed on Monday, May 29, 2017, in observance of Memorial Day. Offices will reopen and Spotlight will resume Tuesday.

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